(1) Process WIC Program food instruments and cash-value
vouchers in accordance with the terms of the WIC Vendor Agreement and 42 U.S.C.
1786, 7 C.F.R. 246.1-246.28, and the rules of this Subchapter;

(2) Accept WIC Program food instruments and cash-value
vouchers in exchange for WIC supplemental foods. Supplemental foods are those
foods that satisfy the requirements of 10A NCAC 43D .0501;

(3) Provide only the authorized supplemental foods
listed on the printed food instrument, or authorized fruits and vegetables with
a printed cash-value voucher. Determine the charges to the WIC Program and
complete the "Pay Exactly" box on the printed food instrument, or
printed cash-value voucher, as set forth in Item (4) of this Rule, prior to
obtaining the signature of the WIC customer. When transacting EBT, the vendor
shall provide to the WIC customer only the approved supplemental foods, fruits,
and vegetables contained in the authorized product list (APL) after it has been
determined that the WIC customer has an available balance on the date of the
transaction. The WIC customer is not required to get all of the supplemental
foods listed on the printed food instrument or the full dollar value of the
printed cash-value voucher. However, a WIC customer may obtain more fruits and
vegetables than the full dollar value of a cash-value voucher if the WIC
customer pays the difference, as set forth in 7 C.F.R. 246.12(h)(3)(xi);

(4) Enter in the "Pay Exactly" box on the
printed food instrument or printed cash-value voucher only the total amount of
the current shelf prices, or less than the current shelf prices, for the
supplemental food provided and shall not charge or collect sales taxes for the
supplemental food provided. Vendors that utilize EBT shall only transmit the
current shelf price of all WIC-approved supplemental foods purchased in the
correct sizes, quantities, and the total dollar amount of all WIC-approved
supplemental foods purchased in the EBT system;

(5) Charge no more for supplemental food provided to a
WIC customer than to a non-WIC customer or no more than the current shelf
price, whichever is less;

(6) Accept payment from the State WIC Program only up
to the maximum price set by the State agency for each supplemental food within
that vendor's peer group. The maximum price for each supplemental food shall be
based on the maximum prices set by the State agency for each supplemental food,
as described in Sub-item (4)(a) of Rule .0707 of this Section, listed on the
food instrument. A request for payment submitted over the maximum price allowed
by the State agency will only be paid up to the maximum price for that
supplemental food;

(7) Accept payment from the State WIC Program only up
to the full dollar value of the cash-value voucher;

(8) Not charge the State WIC Program more than the
maximum price set by the State agency under Item (4)(a) of Rule .0707 of this
Section for each supplemental food within the vendor's peer group;

(9) Provide to WIC customers infant formula, exempt
infant formula, and WIC eligible nutritionals purchased only from the sources
specified in Item (3) of Rule .0707 of this Section. Providing infant formula,
exempt infant formula, or WIC eligible nutritionals that has not been purchased
from the sources specified in Item (3) of Rule .0707 of this Section shall
result in termination of the WIC Vendor Agreement;

(11) Excluding free-standing pharmacies, redeem at least
two thousand dollars ($2,000) annually in WIC supplemental food sales. Failure
to redeem at least two thousand dollars ($2,000) annually in WIC supplemental
food sales shall result in termination of the WIC Vendor Agreement. The store
must wait 180 days to reapply for authorization;

(12) Accept WIC Program food instruments and cash-value
vouchers only on or between the "First Date to Spend" and the
"Last Date to Spend" dates;

(13) Prior to obtaining the WIC customer's signature on
the printed food instrument and cash-value voucher, enter in the "Date
Transacted" box the month, day, and year the WIC food instrument or
cash-value voucher is exchanged for supplemental food;

(14) Ensure that the WIC customer signs the food
instrument or cash-value voucher in the presence of the cashier. Vendors that
utilize EBT shall ensure that a personal identification number (PIN) is used by
the WIC customer to complete the EBT transaction in lieu of a signature;

(15) Ensure that the WIC customer enters the PIN to
initiate the EBT transaction. The vendor shall not enter the PIN for the WIC
customer;

(16) Refuse to transact any food instrument or cash-value
voucher that has been altered;

(17) Not transact food instruments or cash-value vouchers
in whole or in part for cash, credit, unauthorized foods, or non-food items;

(18) Not provide refunds or permit exchanges for
authorized supplemental foods obtained with food instruments or cash-value
vouchers, except for exchanges of an identical authorized supplemental food
when the original authorized supplemental food is defective, spoiled, or has
exceeded its "sell by," "best if used by," or other date
limiting the sale or use of the food. An "identical authorized
supplemental food" means the exact brand, type and size as the original
authorized supplemental food obtained and returned by the WIC customer;

(19) Imprint the authorized WIC vendor stamp in the
"Pay the Authorized WIC Vendor Stamped Here" box on the face of the
printed food instrument or cash-value voucher to enable the vendor number to be
read during the WIC Program's editing process;

(20) Imprint the vendor's bank deposit stamp or the
vendor's name, address, and bank account number in the "Authorized WIC
Vendor Stamp" box in the endorsement on the printed food instrument or
cash-value voucher;

(21) Deposit WIC program printed food instruments and
cash-value vouchers in the vendor's bank. All North Carolina WIC program
printed food instruments and cash-value vouchers must be deposited in the
vendor's bank within 60 days of the "First Date to Spend" on the
printed food instrument or cash-value voucher;

(22) Ensure that the authorized WIC vendor stamp is used
only for the purpose and in the manner authorized by the Agreement and be
responsible for the unauthorized use of the authorized WIC vendor stamp;

(23) Maintain storage of the authorized WIC vendor stamp
so only the staff designated by the vendor owner or manager have access to the
stamp and report loss of this stamp within two business days to the local WIC
agency;

(24) Notify the local WIC agency of misuse (attempted or
actual) of WIC Program food instruments or cash-value vouchers;

(25) Maintain a minimum inventory of supplemental foods
in the store for purchase. Supplemental foods that are outside of the
manufacturer's expiration date do not count towards meeting the minimum
inventory requirement. The following items and sizes constitute the minimum
inventory of supplemental foods for vendors in Peer Groups I through III of
Item (1), vendors in Vendor Peer Groups I through IV of Item (2), and vendors
in Vendor Peer Group IV of Item (3) of Rule .0706 of this Section:

Food Item

Type of Inventory

Quantities Required

Milk

Whole fluid: gallon

-and-

Skim/lowfat fluid:
gallon

2 gallons

4 gallons

Cheese

1 pound package

2 packages

Cereals

2 types: whole grain

(minimum package
size 12 ounce)

6 packages total

Eggs

Grade A, large, white:

1 dozen size carton

2 dozen

Juices

Single strength:

48 ounce container

64 ounce container

4 containers

4 containers

Dried Peas and Beans

1 pound package

2 packages

Peanut Butter

16 to 18 ounce container

2 containers

Tuna

5 to 6 ounce can

6 cans

Bread/Tortillas

16 ounce loaf of bread
or package of tortillas

2 loaves or 2 packages
OR 1 loaf and 1 package

Rice

14 to 16 ounce package

2 packages

Infant Cereal

8 ounce box

6 boxes

Infant Fruits and
Vegetables

3.5 to 4 ounce container

1 type of fruit and 1
type of vegetable

64 ounces

Infant Formula

milk-based powder; 11.0
to 14.0 ounce

-and-

soy-based powder; 11.0
to 14.0 ounce

Brands must be the
primary contract infant formulas

8 cans

4 cans

Fruits

14 to 16 ounce can: 2
varieties

10 cans total

Vegetables

(Excludes foods in Dried Peas and Beans category)

14 to 16 ounce can: 2
varieties

10 cans total

All vendors in Vendor Peer Groups
I through III of Item (1), Peer Groups I through IV of Item (2), and Vendor
Peer Groups IV and V of Item (3) of Rule .0706 of this Section shall supply
milk, soy-based or lactose-free infant formula in 32 ounce ready-to-feed or
lactose-free powder within 48 hours of request by the State or local WIC
agency;

(26) Ensure that all supplemental foods in the store for
purchase are within the manufacturer's expiration date;

(27) Permit the purchase of supplemental food without
requiring other purchases;

(28) Comply with the following EBT provisions:

(a) Sign the WIC Vendor Agreement of the EBT
Processor selected by the State WIC Program or a third-party processor that has
been certified according to criteria established by the EBT Processor selected
by the State WIC Program. Failure by a vendor to sign and retain a WIC Vendor
Agreement with the State WIC Program's EBT Processor or a third-party processor
that has been certified by the State WIC Program's EBT Processor shall result
in termination of the WIC Vendor Agreement. Vendors shall notify the WIC
Program within 24 hours of any periods of time during which they do not
maintain an Agreement with the state WIC Program's EBT Processor or a
third-party processor that has been certified by the State WIC Program's EBT
Processor;

(b) Process EBT transactions in accordance with
the terms of the North Carolina WIC Vendor Agreement, WIC Program State Rules,
federal regulations, and statutes;

(c) Maintain Point of Sale (POS) terminals used
to support the WIC Program in accordance with the minimum lane provisions of 7
C.F.R. 246.12(z)(2);

(d) Maintain a North Carolina EBT Processor
certified in-store EBT system that is available for WIC redemption processing
during all hours the store is open;

(e) Request the North Carolina EBT Processor
re-certify its in-store system if the vendor alters or revises the system in
any manner that impacts the EBT redemption or claims processing system after
initial certification is completed;

(f) For vendors with integrated systems, obtain
EBT card readers to support EBT transactions within their store(s). The vendor
shall ensure that the EBT card readers they obtain meets all EBT and North
Carolina EBT Processor requirements;

(g) Require an owner, manager or other
authorized store representative to complete training on WIC EBT procedures. The
vendor shall ensure that all cashiers and staff are fully trained on WIC EBT
requirements, including training in the acceptance and processing of WIC EBT
transactions;

(h) Require the WIC customer to approve the WIC
transaction. Vendors shall ensure that thevendor's staff does not
approve the WIC transactions for WIC customers under any circumstances;

(i) Release supplemental food to WIC customers
when the transaction has been completed to include receipt of transaction
approval by the EBT processing system, printing of thereceipt, and
updated balance of the WIC customer's account;

(j) Scan or manually enter Universal Product
Codes (UPC) only from approved supplemental foods being purchased by the WIC
customer in the types, sizes and quantities available on the WIC customer's EBT
account. The vendor shall not scan codes from UPC codebooks or reference
sheets;

(k) Return any EBT card found on the vendor's
property and unclaimed for 24 hours to the WIC Program. The vendor shall not
hold or use a WIC customer's EBT card and PIN for any purpose whatsoever;

(l) Connect the vendor's in-store system for
each outlet covered by the WIC Vendor agreement to the State's WIC EBT system
at least once each 24-hour period to download reconciliation files and the WIC
Authorized Product UPC/Product Look-Up (PLU) list.

(29) Attend, or cause a manager or other authorized store
representative to attend, annual vendor training upon notification by the local
WIC agency. Failure to attend annual vendor training by September 30 of each
year shall result in termination of the WIC Vendor Agreement;

(30) Inform and train vendor's cashiers and other staff
on WIC Program requirements;

(31) Be accountable for the actions of its owners,
officers, managers, agents, and employees who commit vendor violations;

(32) Allow monitoring and inspection by State and local
WIC Program staff of the store premises and procedures to ensure compliance
with the agreement and State, and federal WIC Program rules, regulations, and
applicable law. This includes providing access to all program-related records,
including access to all WIC food instruments and cash-value vouchers at the
store; vendor records pertinent to the purchase and sale of WIC supplemental
foods, including invoices, receipts, copies of purchase orders, and any other
proofs of purchase; federal and state corporate and individual income tax and
sales and use tax returns and all records pertinent to these returns; and books
and records of all financial and business transactions. These records must be
retained by the vendor for a period of three years or until any audit
pertaining to these records is resolved, whichever is later. Notwithstanding
any other provision of this Rule and Rules .0707 and .0710 of this Section, failure
or inability to provide these records for an inventory audit or providing false
records for an inventory audit shall be deemed a violation of 7 C.F.R.
246.12(l)(1)(iii)(B) and Subparagraph (a)(1) of Rule .0710 of this Section.
Invoices, receipts, purchase orders, and any other proofs of purchase for WIC
supplemental foods shall include:

(a) the name of the seller and be prepared
entirely by the seller without alteration by the vendor or on the seller's
business letterhead;

(b) the date of purchase and the date the
authorized vendor received the WIC supplemental food at the store if different
from the date of purchase; and

(c) a description of each WIC supplemental food
item purchased, including brand name, unit size, type or form, and quantity;

(33) Maintain a record of all SNAP-eligible food sales
and provide to the State agency upon request a statement of the total amount of
revenue derived from SNAP-eligible food sales and written documentation to
support the amount of sales claimed by the vendor, such as sales records,
financial statements, reports, tax documents or other verifiable documentation;

(34) Submit a current completed WIC Price List when
signing this agreement, and by April 1 and October 1 of each year. The vendor
also agrees to submit a WIC Price List within two weeks of any written request
by the State or local WIC agency;

(35) Reimburse the state agency in full or agree to a
repayment schedule with the state agency within 30 days of written notification
of a claim assessed due to a vendor violation that affects payment to the
vendor or a claim assessed due to the unauthorized use of the WIC vendor stamp.
Failure to reimburse the State agency in full or agree to a repayment schedule
within 30 days of written notification of a claim shall result in termination
of the WIC Vendor Agreement. The state agency shall deny payment or assess a
claim in the amount of the full purchase price of each food instrument or
cash-value voucher invalid under Subparagraphs (a)(2), (a)(5), (a)(6) or (a)(7)
of Rule .0704 of this Section. Denial of payment by the State agency or payment
of a claim by the vendor for a vendor violation(s) shall not absolve the vendor
of the violation(s). The vendor shall also be subject to any vendor sanctions
authorized under Rule .0710 of this Section for the vendor violation(s);

(36) Not seek restitution from the WIC customer for
reimbursement paid by the vendor to the State agency or for WIC food
instruments or cash-value vouchers not paid or partially paid by the state
agency. Additionally, the vendor shall not charge the WIC customer for
authorized supplemental foods obtained with food instruments or cash-value
vouchers;

(37) Not contact a WIC customer outside the store
regarding the transaction or redemption of WIC food instruments or cash-value
vouchers;

(38) Notify the local WIC agency in writing at least 30
days prior to a change of ownership, change in store location, cessation of
operations, or withdrawal from the WIC Program. Change of ownership, change in
store location of more than three miles from the store's previous location,
cessation of operations, withdrawal from the WIC Program, or disqualification
from the WIC Program shall result in termination of the WIC Vendor Agreement by
the State agency. Change of ownership, change in store location, ceasing
operations, withdrawal from the WIC Program, or nonrenewal of the WIC Vendor
Agreement shall not stop a disqualification period applicable to the store;

(39) Return the authorized WIC vendor stamp to the local
WIC agency upon termination of the WIC Vendor Agreement or disqualification
from the WIC Program;

(40) Not discriminate on the basis of WIC participation,
such as failing to offer WIC customers the same courtesies, as set forth in 7
C.F.R. 246.12(g)(3)(iii),offered to other customers or requiring
separate WIC lines;

(41) Reapply to continue to be authorized beyond the
period of its current WIC Vendor Agreement. Additionally, a store shall reapply
to become authorized following the expiration of a disqualification period or
termination of the Agreement. In all cases, the vendor applicant is subject to
the vendor peer group criteria of Rule .0706 of this Section and the vendor
selection criteria of Rule .0707 of this Section; and

(42) Comply with all the requirements for vendor
applicants of Items (3), (4), and (7) through (17), and (19) of Rule .0707 of
this Section throughout the term of authorization. The State agency may
reassess a vendor at any time during the vendor's period of authorization to
determine compliance with these requirements. The State agency shall terminate
the WIC Vendor Agreement of any vendor that fails to comply with Items (3),
(4), (8), (9), (10), (11), (12), (13), (14), (16), (17), or (19) of Rule .0707
of this Section during the vendor's period of authorization, and terminate the
agreement of or sanction or both any vendor that fails to comply with Items
(7), (15), (17),or (19) of Rule .0707 of this Section during the vendor's
period of authorization.